An official implementing the Government's home insulation scheme says he is shocked by audit results which suggest shoddy workmanship is widespread.
About 30,000 homes have been fitted out since the subsidy offering home owners and tenants up to $1800 for insulation or a clean heating device was introduced in July last year.
Of 570 homes audited, problems were found in 359, including 17 that were considered a fire risk.
Energy Efficiency and Conservation Authority chief executive Mike Underhill told Nine to Noon he is very disappointed by the results.
Much stricter requirements have been implemented, he says, and in the next round of audits of 200 houses, no hazards were found.
The authority says contractors have been made to fix the problems and it has doubled the number of audits it carries out.
The director of energy studies at Otago University says he is not suprised at the audit's findings.
Professor Bob Lloyd says other audits show many new homes do not meet the building code requirements for insulation. He says installing insulation is difficult, exacting and unpleasant work, and contractors are often low-skilled.
Australian insulation company suspended
In Australia, the ABC reports environment minister Peter Garrett has suspended an insulation company after another death associated with the Government's home insulation scheme.
A 26-year-old man was electrocuted while installing foil insulation into a home in Queensland. The company, Countrywide, said he was working for a registered electrician subcontracted by the firm.
The ABC said it had obtained documents showing the company was accredited despite a history in telemarketing and no experience in insulation.
The death is the fourth of a tradesman while installing foil insulation.
The minister has been criticised for taking too long to bring in mandatory training for installers, and ignoring calls to ban foil insulation, which is also blamed for dozens of house fires.
The opposition says the situation highlights the need for the Australian government to put more effort into assessing companies and training workers new to the industry.
